FLSmidth Gains as JPMorgan Sees U.S. Demand: Copenhagen Mover

Feb. 20 (Bloomberg) -- FLSmidth & Co. A/S, Europe’s biggest
maker of cement production lines, rose to the highest price in
more than 10 months in Copenhagen after JPMorgan Chase & Co.
said increased U.S. demand will drive the stock higher.

FLSmidth rose as much as 1.9 percent to 402.80 kroner, the
highest price since March 28. The stock gained 0.8 percent to
398.80 kroner at 10:40 a.m. in the Danish capital, with trading
volume at 42 percent of the three-month daily average.

Stricter U.S. pollution laws for cement facilities will
boost orders for new production lines and help FLSmidth improve
profits, JPMorgan analysts, led by Alexander Whight, said in a
note distributed today. Revenue in its cement unit may jump as
much as 66 percent this year, FLSmidth said earlier this month
when the Copenhagen-based company reported fourth-quarter
earnings that missed analyst estimates.

“We believe the market will increasingly focus on 2014/15
potential from the U.S. cement opportunity as orders
materialize,” JPMorgan said. “We reiterate our overweight
rating despite the stock being up 18 percent since December.”

FLSmidth will also benefit from a recovery in its
unprofitable material handling division as new management stops
“the bleeding” to restore profits as early as this year,
JPMorgan said.

The bank raised its December 2013 price target on the share
to 435 kroner from 390 kroner.